Turkey Metals Report provides industry professionals and strategists, corporate analysts, metals associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Turkey's metals industry.

As reported by the World Steel Association (WSA), 18.5mn tonnes of crude steel were produced in Turkey in 9M09 a fall of 13.5% year-on-year (y-o-y). Of this, 5.4mn tonnes were cast in integrated plants and 13.1mn tonnes were cast in electric arc furnaces (EAFs). These figures fall roughly in line with BMIs forecasts that envisage Turkish steel production reaching 25.7mn tonnes in 2009 and rising to 39.13mn tonnes in 2014.

However, as revealed by the Istanbul Mineral and Metals Exporters Association in September 2009, Turkeys steel exporters are still suffering from the recession, although it looks likely the market has now reached its bottom. Steel product exports plunged 22.23% y-o-y to 1.33mn tonnes with export earnings down by 61.83%. For 9M09 export earnings totalled US$8.17bn, falling by 50.35% on a yearly basis, with steel exports amounting to 13.99mn tonnes 12.69% lower than the corresponding period in the previous year. However, in September 2009, exports increased 5% in volume terms month-on-month (m-o-m), and saw a 2.19% increase in earnings, to US$824mn

Export figures for the first three quarters of 2009 indicate the impact of recession on the industry after a successful corresponding period in 2008, when players such as Erdemir, announced record net profits. In the wake of stagnation, producers suffered pressure on cash-flows in 9M09, resulting in severe production cuts. Output reductions gradually increased during the period, coupled with record-low prices for their products. A further pressure factor has been increasing Chinese competition. However, the slight upward trend that started September 2009 is likely to gather momentum through 2010.The major factor driving this will be the revival of real industrial demand as emerging countries come out of the downturn. However, while the UAE is still the industrys largest regional market, buyers in the Gulf are not in a hurry to file new orders as rebar stockists and producers are trying to run down existing inventory. Furthermore, the numerous publicly-financed construction projects in Saudi Arabia demand the use of local suppliers, limiting the scope for Turkish exporters in the Kingdom

In positive news for the sector, in November 2009, POSCO (Pohang Iron and Steel Company), the largest South Korean steelmaker, announced that it is building a new automotive steel production complex in Nilufer, in Turkeys Bursa region. The facility, to be completed in June 2010, will have a capacity of 170,000 tonnes per annum (tpa). Production will supply automakers, including Ford Motor Co., Renault SA and Toyota Motor Corp. POSCO is the worlds fourth largest steel producer by output, though currently 70% of its revenue comes from its domestic market. The Nilufer plant follows recent investment in Thailand, India and China and a boost of production in Japan as the company looks to expand its overseas market share.

Key Topics Covered:

• SWOT Analysis
• Global Metals Market Overview
• Regional Overview
• Industry Forecast Scenario
• Competitive Landscape
• Global Assumptions
• Methodology

Companies Mentioned:

• Erdemir
• Kardemir

For more information visit http://www.researchandmarkets.com/research/114719/turkey_metals_repo